Why Time Tracking Matters for R&D Tax Credits

For companies engaged in research and development, time tracking is more than a productivity tool -- it is a compliance requirement. R&D tax credit programs like the Dutch WBSO demand detailed records of how hours are spent on qualifying activities.

The Compliance Challenge

Many teams track time using spreadsheets or basic tools that lack the structure auditors expect. When an audit occurs, these teams scramble to reconstruct records, often finding gaps that reduce their eligible claims.

What Auditors Look For

Auditors want to see structured records that link hours to specific projects, include detailed activity descriptions, and follow a clear approval workflow. Generic entries like "worked on project" are insufficient -- they need to understand what research activities were performed and why.

How Structured Time Tracking Helps

A purpose-built time tracking system enforces the documentation standards that auditors expect from day one. Required fields ensure every entry includes a meaningful description. Approval workflows create accountability. And automated reports transform raw time data into the structured narratives that compliance reviewers need.

The Bottom Line

Teams that invest in structured time tracking typically claim more of their eligible R&D hours because their records are complete, consistent, and audit-ready. The time saved on administration and the confidence gained during audits more than justify the investment.